Home Audio, advice needed.
 

I am looking to upgrade my current 5.1 surround sound system, it is outdated and wasn't that great from the get go. I'd like to stick with a 5.1 system, and most importantly I'd like to have at least 3 digital/optical inputs. I also would not like to spend a fortune on this system...Not sure if I'll be able to get all of this. Somewhere between 700 - 1200 watts would be nice also.

Anyone have any experiences with anything similar to this? Advice on what sounds best / what to stay away from?

Another thing that probably goes unsaid in a system like this is the sub needs to be self powered. I've heard to many that aren't and they just don't sound good.

Not sure how much you are looking to spend, but I just finished doing a lot of research and purchasing/installing a system. I'd have to say that reading multiple sites (consumer reports, cnet's tech reviews, several AV forums) Denon's receivers seem to be very well regarded. So far, I'm thrilled with our new Denon receiver and they have models that will meet your criteria (although maybe not your price criteria.) As for speakers, I went with Definitive's ProCinema set, but there seems to be a lot more variability in opinions re: that.

Just pulled up a couple of the Denon receivers and those are very nice...but I'm looking to spend that amount total.
Edit: Just looking a little more, I actually found a few different models that are directly in my price range

If I could find a great deal on a receiver and speakers I'd like to go that route, but I need to find a job before I can set aside that much.

I really don't know much about speaker systems and such...but I've picked up a couple good pieces of knowledge from reading some of those "expert" sites. For one, don't worry too much about the total wattage. Something about how companies can measure it in different ways, so lesser wattage in a better brand would actually pack more punch.

Also, you will get much better results if you put your system together separately, as opposed to getting a Home Theater in a Box (sounds like you're leaning that way, but I may have misunderstood.

Christmas. Home theatre in a box.